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ACTIVITY LOCATIONS The City is permitted to spend up to I S% of its annual CDBG entitlement grant funds, plus previous year's program income, on public services, which are very broadly defined. Some of the previous public service projects the City has funded include emergency shelter services, multi- services (through a community service center), employment services, fair housing counseling, literacy programs, tenant/landlord counseling, and services for disabled households. CDBG funds can be used for four (4) general types of projects: housing, capital projects, economic development, and public services. All projects must meet at least one (1) of HUD's national objectives: 1) to benefit low/moderate-income people; 2) to prevent or eliminate slums and blight; and 3) to meet an urgent community development need. CDBG funds must be used for the direct delivery of services and not for general overhead or administrative costs that are unrelated to the project being funded. Even if a project is suitable for one of the City's eligible categories, it must also pass the low- and moderate-income benefit test. A project basically meets this standard if at least 51% of the beneficiaries have low and moderate incomes (i.e., incomes at or below 80% of Area Median Income) or if the project benefits an area (e.g., census tracts, service area, neighborhood, etc.) with a majority of lower-income people. Funded projects are required to document the income levels of persons and households receiving these services. Through the City's Community Assistance Program (CAP), the City of San Leandro supports community-based non-profit organizations that provide public services to San Leandro residents. There are two (2) sources of funds for CAP: the City's General Fund and CDBG funds. The City's Request for Proposals (RFP) process occurs every two (2) years through CAP. Proposals submitted through the CAP process are reviewed by members of the Human Services Commission and City staff. The City's Consolidated Plan provides guidance for the City's Human Services Commission (HSC) and staff in allocating CDBG funds in the community. Because there are special CDBG eligibility and reporting requirements, City staff work closely with the HSC to determine which agencies are best suited for CDBG funds. HSC members evaluate applications using HSC and CDBG evaluation criteria. Below is a partial list of the specific criteria used to evaluate CDBG-funded applications: • Project is CDBG-eligible and meets one of the three National Objectives (stated above). • Project is consistent with the community priorities and goals stated in the Consolidated Plan and/or other City planning documents and needs assessments. • Prior experience and performance with CDBG-related activities and/or • Prior experience with other grant programs, and proven record carrying out service projects in the community. • Financial capacity as indicated by audited financial statements. • Adequate staffing (staff size, experience, and qualifications). • Organizational strength (e.g., record-keeping methods, financial systems, data collection). Fina/Action Plan - FY2009-10 City of San Leandro Page 11